January 3oth Mortgage Market Wrap-up

MBS prices are even (FNMA 30-yr 4.0 at 99.22), below the initial price level at +7/32. Unfavorable repricing was seen. It was a volatile session. Today's GDP data showed a smaller than expected decline. The Chicago PMI and Consumer Sentiment both came in close to the consensus. The Dow fell 150 points. For the week, MBS prices fell about -24/32.

Next week, the important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of 500K jobs in January. Before the Employment Data, a wide range of other economic data will be released, beginning with Construction Spending and Personal Income on Monday. The ISM national manufacturing index will also come out that day. Pending Home Sales, a leading indicator for the housing market, is on the schedule for Tuesday. ISM Services will be released on Wednesday. Productivity and Factory Orders are on tap for Thursday.